Posted on 03/07/2005 9:40:23 AM PST by qam1
Ping list for the discussion of the politics and social (and sometimes nostalgic) aspects that directly effect Gen-Reagan/Generation-X (Those born from 1965-1981) including all the spending previous generations (i.e. The Baby Boomers) are doing that Gen-X and Y will end up paying for.
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I have always wondered about this advice. How many have a lot of money to invest all at once? Seems like most people would be more likely to free up a small amount regularly and wouldn't have a large chunk anyway. We all pity those who have a sudden large inheritance or if somebody wins a lottery. The agony of the sudden rich deciding whether to invest a large amount in stocks and bonds all at once or to stash it some interest-bearing place while doing some research must be noticeable to investment advisors.
By not having the money to jump in and buy the moment's hot tech stocks, including North Carolina's own Red Hat Inc., you didn't lose it all when the market crashed in 2000.
Not having money is the best!
Wish I had some money to invest. Tickles me when I listen to these shows via tv or radio telling people how to invest and when, especially the push to buy gold. The missing link is that a person's got to have some money to invest.
Didn't they say this in 1928? Nobody can predict the future...
-The missing link is that a person's got to have some money to invest.-
Indeed - just try investing $500; you'll get virtually nowhere.
This bears repeating.
... make regular investments and not try to time the markets fluctuations. That's called dollar-cost averaging, not irrational exuberance.
Dollar-cost averaging means investing a certain fixed amount every month or from every paycheck no matter the direction of the market or the relative health of corporate earnings. Often, such investments are made by automatic withdrawals from checking or savings accounts into IRAs or from paychecks into 401(k) accounts.
Or, perhaps, a portion of the Social Security taxes taken out of my paychecks???
The idea behind this practice is that, historically, the stock market's advances have more than made up for its losses, producing a healthy return. It is also considered a safer strategy than investing or selling a chunk of stock all at once and possibly at the wrong time.
Obviously it's not "safe" enough for the Dumbocrats, who want to keep the Social Security ponzi scheme intact...
Younger investors also have time on their side. The earlier you start investing, the more money you'll have at retirement. That's called compounding.
Another reason younger investors want Social Security reform.
You can open brokerage accounts with $500, as long as you commit to an automatic-deduction savings plan, which can cost as little as $25 a month. Anyone can do this, even a college student, with minimal sacrifice.
-ccm
You got to be kidding me. Then why are the commercials selling? When I heard the S&P hit a 3 1/2 year high I sold out too. If you had $10,000 five years ago and invested in the NASDAQ you would presently have $4,000. If you invested in Gold you would now have $16,000. Any questions?
Isn't it funny how all these things are popping up here and there that the liberals claimed were preposterous, but now are accepted? They insisted the stock market didn't tank untill 'W' was in office in 2001... also see: CHINA MISSLES shows the result of Clinton giving our top nuclear secrets to China for campain contributions...
Past is past. What do you do now? Still buy gold?
Not to brag, but dollar cost averaging over many years has put me into a certain category. I plan to continue doing it until I die.
It's not a one time thing. You need to carve out small biweekly or monthly investments, that you feed over the long haul. Always pay yourself first. Rich Dad 101 ... First step before all this. Write down all money out and money in weekly. Analyze your cash flow. See what you can cut in terms of the outbound piece. If you don't *need* (as opposed to want) it, then don't buy it until after you have paid yourself, and paid your bills. Doing what I have described over many years will, if not make you rich, at least vastly increase your net worth.
$500 initial investment
$1 a day added for 65 years
Put in agressive growth stock fund 10% return
At age 65 $2,210,008.82
RE: The missing link is that a person's got to have some money to invest.
Do you have cash flow? The answer is yes. Write down all your expenses and all your sources of income. Chart it out over the course of weeks / months. Determine what you can cut on the outbound. Pay yourself first (e.g. carve out a small sum and add it to a money market / mutual fund / IRA / stock portfolio / bond portfolio), pay your bills then if you have anything left, that's your fun money. Most people (and I really do mean most) do this in reverse - fun, bills .... oops, nothing left! Cut up credit cards if you are having a particularly difficult time turning this around. Rich Dad 101 ...
You have to look at the USD. Presently around 82 and 83. What I see it will continue to go sideways. If it breaks below 80 look out. All these fund managers will hit the panic button at the same time to try to get out. Now the title of the post is young investors...Sure if you are maybe 5 of 6 years old and are looking for a secure retirement go ahead and invest. If you are not comfortable with putting your money into a hard asset (Gold) then remember cash is always king.
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